Major Change

March 1, 1986

TOKYO — The Cabinet Friday approved five bills for submission to Parliament that would denationalize Japan National Railways, the country's second largest employer, and break it up into seven private companies. This is the largest reform undertaken by the government since the end of the U.S. military occupation that followed World War II. The railway system has 13,367 miles of track, including four 125-mph bullet lines, and annual sales of $16.7 billion. But it has a debt of $207.2 billion. The National Railway Workers Union, which has 220,000 members, and the Socialist and Communist parties which the union supports are opposed to the change. The bills are expected to pass because of the government's majority in parliament.